Latest Finance-Economy News
Tepid US jobs report boosts global stocks on Fed rate‑cut expectations
A weaker‑than‑expected US December payroll gain of about **50,000 jobs**, alongside an unemployment rate easing to **4.4%**, has reinforced expectations of further Federal Reserve rate cuts in 2026. The S&P 500 rose **0.65%** to another record and the FTSE 100 also hit a record high, as investors bet on at least **one to two additional Fed cuts** this year.
Wall Street starts 2026 at record highs despite geopolitical tensions
US equities have begun the year strongly, with the S&P 500 up about **1.1%** over the first five trading days of 2026 and edging toward the **7,000‑point** level. Analysts say markets are largely **discounting geopolitical risks** and focusing instead on inflation, growth, jobs data, and the Fed’s policy path.
London’s FTSE 100 hits record as miners and rate hopes lift UK market
The **FTSE 100** closed at a record high, supported by optimism over potential Fed rate cuts and strength in commodity‑linked stocks. Mining giant **Glencore** surged nearly **10%** on reports of merger talks with **Rio Tinto**, a deal that could create the world’s largest mining group valued around **$207 billion**.
Oil prices extend gains as US sanctions and Venezuela turmoil tighten supply outlook
Brent crude climbed more than **2%** to about **$63.34** per barrel and WTI to **$59.12**, marking a third straight weekly gain amid rising geopolitical tensions. Heightened US sanctions pressure on Russian energy exports and a US military operation that led to the detention of Venezuela’s Nicolás Maduro have sharpened concerns over global supply disruptions.
OPEC+ keeps production cuts through Q1 to defend oil market stability
Eight key **OPEC+** members decided in early January to **maintain existing production restrictions at least through the first quarter of 2026** to avoid renewed oversupply. The alliance is prioritizing price and market stability during seasonally weaker winter demand, against the backdrop of sanctions, regional crises, and shifting global trade flows.
US pushes punitive tariffs on countries buying Russian energy
The United States is advancing legislation to impose tariffs of up to **500%** on imports from countries deemed to be knowingly trading in Russian oil and gas. The proposal, backed by President Donald Trump, aims to further isolate Russian energy exports and could significantly **reshape global oil and gas trade routes** if enacted.
Coal demand hits record high despite global decarbonization efforts
Preliminary data indicate **global coal demand rose about 0.5% in 2025 to roughly 8.85 billion tons**, reaching a new historical peak. Growth is driven primarily by Asian economies, underscoring the **persistence of coal in the energy mix** even as many countries pledge faster emissions reductions.
Wall Street economist Torsten Slok warns of potential US economic overheating
Apollo Global Management chief economist **Torsten Slok** has shifted from a stagflation warning to forecasting **economic overheating in 2026**, citing strong growth tailwinds. He estimates US recession risk at only **10%**, pointing to AI‑driven investment, a weaker dollar, more clarity on tariffs, and fiscal stimulus from President Trump’s **“One Big Beautiful Bill,”** which he says could add nearly **1 percentage point** to 2026 GDP growth.
Global 2026 outlook: advanced and emerging economies lean on domestic demand
A recent global outlook projects **4.5% GDP growth for China in 2026**, driven by more expansionary fiscal policy and a somewhat stronger renminbi as the US dollar eases. The report highlights that weaker external demand will likely force many economies to rely more on **domestic consumption and investment**, particularly in sectors tied to AI and manufacturing.
India’s economy powers ahead with strong consumption and investment
India entered fiscal year 2025–26 with real GDP growth of **8% year‑on‑year in the first half**, supported by robust private consumption (7.5%) and investment (7.6%). Income tax cuts, rationalized GST rates, easing inflation, and cumulative RBI rate cuts of **1.25 percentage points** have boosted purchasing power and credit growth, underpinning a positive 2026 outlook.